Government Corruption News Stories

Excerpts of Key Government Corruption News Stories in Major Media

Below are key excerpts of revealing news articles on government corruption from reliable news media sources. If any link fails to function, a paywall blocks full access, or the article is no longer available, try these digital tools.

Note: This comprehensive list of news stories is usually updated once a week. Explore our full index to revealing excerpts of key major media news stories on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.

A retired medical supply manufacturer who considers bisphenol A to be "perfectly safe" gave $5 million to the research center headed by the chairman of a Food and Drug Administration panel about to rule on the chemical's safety. The July donation from Charles Gelman is nearly 50 times the annual budget of the University of Michigan Risk Science Center, where Martin Philbert is founder and co-director. Philbert did not disclose the donation to the FDA, and agency officials learned of it when reporters asked about it. Gelman said he considers the chemical, which is used to make baby bottles and aluminum can liners, to be safe. He said he had made his views clear to Philbert in several conversations. Philbert denied that. Philbert's committee is expected to release its opinion this month. The decision of Philbert's committee is expected to have huge implications on the regulation and sale of the chemical in items such as baby bottles, reusable food containers and plastic wraps. Since the late 1990s, studies have linked bisphenol A to cancer, heart disease, obesity, reproductive failures and hyperactivity in laboratory animals. Gelman, a retired manufacturer of syringes and medical filtration devices, has fought against government regulation of pollutants for years. He is an anti-regulation activist and an outspoken supporter of organizations such as JunkScience.com, the Cato Institute and the Competitive Enterprise Institute that attack the credibility of government and academic scientists on such topics as global warming and hazardous chemicals.

Note: For key reports on government corruption from reliable sources, click here.

Michael Cantrell, an engineer at the Army Space and Missile Defense Command headquarters in Huntsville, Ala., along with his deputy, Doug Ennis, had lined up millions of dollars from Congress for defense companies. Mr. Cantrell decided it was time to take a cut. Within months, [he] began getting personal checks from contractors and later [picked] up a briefcase stuffed with $75,000. The two men eventually collected more than $1.6 million in kickbacks, through 2007, [causing] them to plead guilty this year to corruption charges. But what has drawn little scrutiny are [Cantrell's] activities leading up to it. Thanks to important allies in Congress, he extracted nearly $350 million for projects the Pentagon did not want, wasting taxpayer money on what would become dead-end ventures. He often bypassed his bosses and broke department rules to make his case on Capitol Hill. He enlisted contractors to pitch projects that would keep the dollars flowing and paid lobbyists to ease them through. He cultivated lawmakers, who were eager to send money back home or to favored contractors and did not ask many questions. And when he ran into trouble, he could count on his powerful friends for protection from Pentagon officials who provided little oversight and were afraid of alienating lawmakers. “I could go over to the Hill and put pressure on people above me and get something done,” Mr. Cantrell explained. “With the Army, as long as the senator is not calling over and complaining, everything is O.K. And the senator will not call over and complain unless the contractor you’re working with does not get his money. So you just have to keep the players happy and it works.”

Note: For key reports on government corruption from reliable sources, click here.

Hundreds of US citizens overseas have been eavesdropped on as they called friends and family back home, according to two former military intercept operators who worked at the giant National Security Agency (NSA) center in Fort Gordon, Georgia. "These were just really everyday, average, ordinary Americans who happened to be in the Middle East, in our area of intercept and happened to be making these phone calls on satellite phones," said Adrienne Kinne, a 31-year old US Army Reserves Arab linguist assigned to a special military program at the NSA's Back Hall at Fort Gordon from November 2001 to 2003. She said US military officers, American journalists and American aid workers were routinely intercepted and "collected on" as they called their offices or homes in the United States. Another intercept operator, former Navy Arab linguist, David Murfee Faulk, 39, said he and his fellow intercept operators listened into hundreds of Americans picked up using phones in Baghdad's Green Zone from late 2003 to November 2007. Both former intercept operators came forward at first to speak with investigative journalist [James] Bamford for a book on the NSA, The Shadow Factory, to be published next week. "It's extremely rare," said Bamford, who has written two previous books on the NSA, including the landmark Puzzle Palace which first revealed the existence of the super secret spy agency. "Both of them felt that what they were doing was illegal and improper, and immoral, and it shouldn't be done, and that's what forces whistleblowers."

Note: For many reports from major media sources of disturbing threats to privacy, click here.

By exploring the current, post-9/11 operations of the NSA [National Security Agency, James] Bamford ... goes where congressional oversight committees and investigative journalists still struggle to go. [When] the Bush administration declared its ... global war on terror, Congress agreed to most of the White House's demands. According to Bamford, the NSA's expanded powers and resources enabled it to collect communications both inside and outside the United States. He quotes a former NSA employee as a witness to the agency's spying on the conversations of Americans who have no connection to terrorism. After suing the NSA for documents, [Bamford] obtained considerable evidence that telecommunication companies (with the notable exception of Qwest) knowingly violated U.S. law by cooperating with the NSA to tap fiber optic lines. In impressive detail, The Shadow Factory: The Ultra-Secret NSA from 9/11 to the Eavesdropping on America tells how private contractors, including some little-known entities with foreign owners, have done the sensitive work of storing and processing the voices and written data of Americans and non-Americans alike. In the book, he offers new revelations about the National Security Agency's counterterrorism tactics, including its controversial domestic surveillance programs. Bamford warns of worse to come: 'There is now the capacity to make tyranny total in America. Only law ensures that we never fall into that abyss -- the abyss from which there is no return.'"

Note: Bamford is the author of two other books on the NSA: Body of Secrets and The Puzzle Palace.

Once upon a time, a politician took campaign contributions and favors from a friendly constituent who happened to run a savings and loan association. The contributions were generous: They came to about $200,000 in today's dollars, and on top of that there were several free vacations for the politician and his family, along with private jet trips and other perks. The politician voted repeatedly against congressional efforts to tighten regulation of S&Ls, and in 1987, when he learned that his constituent's S&L was the target of a federal investigation, he met with regulators in an effort to get them to back off. That politician was John McCain, and his generous friend was Charles Keating, head of Lincoln Savings & Loan. While he was courting McCain and other senators and urging them to oppose tougher regulation of S&Ls, Keating was also investing his depositors' federally insured savings in risky ventures. In 1989, [Lincoln] went belly up -- and more than 20,000 Lincoln customers saw their savings vanish. Keating went to prison, and McCain's Senate career almost ended. Together with the rest of the so-called Keating Five ... McCain was investigated by the Senate Ethics Committee and ultimately reprimanded for "poor judgment." But the savings and loan crisis mushroomed. Eventually, the government spent about $125 billion in taxpayer dollars to bail out hundreds of failed S&Ls. The $125 billion seems like small change compared to the $700-billion price tag for the Bush administration's proposed Wall Street bailout. But the root causes of both crises are the same: a lethal mix of deregulation and greed.

The Centers for Disease Control and Prevention failed to act for at least a year on warnings that trailers housing refugees from Hurricanes Katrina and Rita contained dangerous levels of formaldehyde, according to a House subcommittee report released [on October 6]. Instead, the CDC's Agency for Toxic Substances and Disease Registry demoted the scientist who questioned its initial assessment that the trailers were safe as long as residents opened a window or another vent, the report said. That appraisal was produced in February 2007 at the request of the Federal Emergency Management Agency, which had received thousands of complaints about fumes since providing the trailers to families left homeless by the devastating 2005 hurricanes. Formaldehyde is known to cause cancer, chronic bronchitis, eye irritation and other ailments. It was used in glue for rugs, plywood, fiberboard and other materials. The subcommittee's report came three days after a federal judge in New Orleans ruled that FEMA can be sued by hurricane victims who claim they were exposed to toxic fumes. The subcommittee report noted that the agency took eight months to revise its initial finding and did so only after Christopher De Rosa, then director of the CDC agency's Division of Toxicology and Environmental Medicine, publicly flagged scientific errors. "We believe that Dr. De Rosa is a whistle-blower and was removed from his position, which he had held for 16 years, in retaliation for his persistent attempts to push the agency's leadership to take more substantive actions to protect the public's health," the report said.

Note: For more revealing reports on the aftermath of Hurricane Katrina, click here.

In 18 months of searching, Justice Department Inspector General Glenn A. Fine and Office of Professional Responsibility chief H. Marshall Jarrett have uncovered new e-mail messages hinting at heightened involvement of White House lawyers and political aides in the firings of nine federal prosecutors two years ago. But they could not probe much deeper because key officials declined to be interviewed and a critical timeline drafted by the White House was so heavily redacted that it was "virtually worthless as an investigative tool," the authorities said. "We were unable to fully develop the facts regarding the removal of [David C.] Iglesias and several other U.S. Attorneys because of the refusal by certain key witnesses to be interviewed by us, as well as the White House's decision not to provide ... internal documents to us," the investigators concluded in their report. Attorney General Michael B. Mukasey on Monday named a veteran public-corruption prosecutor, Nora R. Dannehy, to continue the investigation. Investigators urged Dannehy to focus on the dismissal of Iglesias in New Mexico. He was the subject of repeated complaints by Republican lawmakers to White House and Justice Department officials in 2005 and 2006 over not bringing voter-fraud and corruption charges against Democrats. Their report said the internal probe at Justice could not reach Miers and Rove, "both of whom appear to have significant first-hand knowledge regarding Iglesias's dismissal."

Note: For many reports on government secrecy from reliable sources, click here.

The former No. 3 official at the CIA pleaded guilty Monday to defrauding the government, closing an investigation that linked the nation's preeminent spy service to the corruption scandal involving former Rep. Randy "Duke" Cunningham. In admitting that he abused his rank to steer lucrative contracts to cronies, Kyle Dustin "Dusty" Foggo, the agency's onetime executive director, became one of the highest-ranking officials in CIA history to be convicted of criminal charges. But the deal also involved major concessions from prosecutors, who allowed Foggo to admit guilt to a single fraud charge, wiping out 27 additional counts that included money laundering and conspiracy. Prosecutors indicated that they would recommend he serve no more than 37 months. The revelations of Foggo's crimes surfaced two years ago during one of the most tumultuous periods in recent agency history, and added to the pressure on the Bush administration to remove Porter J. Goss as CIA director in 2006. Goss selected Foggo for the agency's third-ranking position. Foggo had never served as a case officer or an analyst -- the jobs that typically garner the most respect within the CIA. But as a procurement officer at a secret CIA post in Frankfurt, Germany, he was in a position to cultivate contacts with members of Congress and other influential officials who visited during overseas trips to war zones.

Note: Interesting that a guilty plea for one count was exchanged for dismissing numerous other charges of fraud and money laundering. For an excellent analysis of the reasons behind this unusual prosecutorial strategy, click here. Buzzy Krongard, the previous #3 man at the CIA, has been linked to the millions of dollars in suspicious stock option trades made just prior to 9/11 that were never claimed, though this received little media coverage.

Thanks to the Sept. 11 interview of Sarah Palin by Charles Gibson of ABC News, the Bush Doctrine has become part of the American vocabulary. Although it has been a fateful doctrine - it was used to justify the attack on Iraq - many Americans reported that they were as clueless about it as Gov. Palin. So what is the Bush Doctrine? According to international law as generally understood since the creation of the United Nations, a pre-emptive attack is legal only if a country has certain knowledge that an attack on it is imminent - too imminent for the matter to be taken to the U.N. Security Council. Pre-emptive war is different from preventive war, in which a country, fearing that another country may become strong enough to threaten it at some time in the future, attacks it to prevent this possibility. Preventive wars are illegal under international law. This distinction, however, creates a terminological problem: Although preventive war is worse than pre-emptive war, to most ears preemption sounds worse. Many people, therefore, speak of pre-emptive war when they mean preventive war. To avoid confusion, we can use the term pre-emptive-preventive war. Neoconservatives, the most powerful of whom is Vice President Dick Cheney, had long disliked the idea that America's use of military power could be constrained by the prohibition against preemptive-preventive war. In 1992, his last year as secretary of defense, Cheney produced a draft of the Defense Planning Guidance that said the United States should use force to "pre-empt" and "preclude threats." After the 9/11 terrorist attacks, the neocons were able to turn their wish into U.S. policy.

Note: This article is by WantToKnow team member David Ray Griffin. He analyzes the significance of the 9/11 attacks for the acceptance of the Bush Doctrine in more detail in his recent book The New Pearl Harbor Revisited, pointing out that the author of the document which first made the doctrine official policy was Philip Zelikow, who then later became executive director of the 9/11 Commission.

Bruce Ivins, the Army scientist accused of masterminding the 2001 anthrax attacks, e-mailed himself last year saying he knew who the killer was, according to court documents unsealed Wednesday. "Yes! Yes! Yes!!!!!!! I finally know who mailed the anthrax letters in the fall of 2001. I've pieced it together!" Ivins wrote in the e-mail dated Sept. 7, 2007, according to an FBI affidavit. "I'm not looking forward to everybody getting dragged through the mud, but at least it will all be over," Ivins allegedly wrote. "Finally! I should have it TOTALLY nailed down within the month. I should have been a private eye!!!!" The e-mail did not say who Ivins thought was the anthrax killer. Ivins committed suicide in July as prosecutors prepared to charge him in the mailings that killed five people and sickened 17 others. The e-mail was signed "bruce" and sent from an America Online address by the name of "KingBadger7." Authorities said it was one of at least six e-mail addresses registered to Ivins. The FBI affidavit was included in the final batch of court documents to be released by the government that shows how prosecutors built their case against Ivins. Ivins' lawyer, Paul Kemp, has maintained that Ivins was innocent and has predicted the scientist would have been cleared if the case had gone to trial. It was not unusual for Ivins to e-mail himself, according to the FBI document. "In addition, Ivins has sent at least one other e-mail to himself that details his opinion of who may have been the anthrax mailer," the affidavit states.

Note: Isn't it strange that the man the FBI accused of being the anthrax killer would send himself an e-mail saying he knew who the killer was? For many strange deaths of microbiologists that occurred shortly after the anthrax scare, click here.

Treasury Secretary Paulson's edict to create a $700 billion fund to buy worthless mortgage securities from agitated wealthy bond investors is nothing short of a final step on the path to the end of the republic. The secretary claims he can only be effective if his decisions are beyond judicial review. Our government and its owners appear to be testing how much the American public will tolerate. A few years ago, no one could have imagined that the silent majority would quietly accept thefts of this magnitude from a government that stopped tiny payments to single mothers with poor children in the name of welfare reform because the program's $10 billion cost was breaking the federal budget. If the public allows this theft, then it will signal to powerful forces that they can essentially do anything, because the American public has become so mushy-headed that it will stand up for nothing. When power discovers that those from whom it would exact payment are powerless, its viciousness increases infinitely. Our enemy has revealed itself, and it is our own government. Because the American public has not been introduced to methods for controlling its government for generations, I will suggest one called a general strike. This fundamental democratic power is where everyone decides to send a message to the government by not going to work, to school, shopping, nowhere. This is the critical time when charlatans among us will promise they can save us from the inevitable if we only allow them the power they need to save us. They are lying.

Note: This article's author Sean Olender is an attorney in San Mateo, California. Mr. Oleander predicted the bailout of Fannie Mae and Freddie Mac months before it happened based on clearly disempowering moves by the government. To see his prescient article on this from Feb. 2008, click here.

The market was 500 trades away from Armageddon on Thursday [September 18], traders inside two large custodial banks tell The Post. Had the Treasury and Fed not quickly stepped into the fray that morning with a quick $105 billion injection of liquidity, the Dow could have collapsed. According to traders, who spoke on the condition of anonymity, money market funds were inundated with $500 billion in sell orders prior to the opening. The Fed's dramatic $105 billion liquidity injection on Thursday (pre-market) was just enough to keep key institutional accounts from following through on the sell orders and starting a stampede of cash that could have brought large tracts of the US economy to a halt. Cracks started to show in money market accounts late Tuesday when shares in one fund, the Reserve Primary Fund - which touted itself as super safe - fell below the golden $1 a share level. By Wednesday, banks sensed a run on their accounts. They started stockpiling cash in anticipation of withdrawals. Banks, which usually keep an average of $2 billion in excess reserves earmarked for withdrawals, pumped that up to an astounding $90 billion, Lou Crandall, chief economist at Wrighton ICAP, told The [Wall Street] Journal. And for good reason. By the close of business on Wednesday, $144.5 billion - a record - had been withdrawn. How much money was taken out of money market funds the prior week? Roughly $7.1 billion, according to AMG Data Services. By Thursday, that level ... had grown to $100 billion.

Note: For insight into the banking and financial powers that runs today's governments, click here.

A federal judge [has] ordered Dick Cheney to preserve a wide range of the records from his time as vice president. The decision by U.S. District Judge Colleen Kollar-Kotelly is a setback for the Bush administration in its effort to promote a narrow definition of materials that must be safeguarded under the Presidential Records Act. The Bush administration's legal position "heightens the court's concern" that some records may not be preserved, said the judge. A private group, Citizens for Responsibility and Ethics in Washington, is suing Cheney and the Executive Office of the President in an effort to ensure that no presidential records are destroyed or handled in a way that makes them unavailable to the public. Cheney and the other defendants in the case "were only willing to agree to a preservation order that tracked their narrowed interpretation" of the Presidential Records Act, wrote Kollar-Kotelly. The administration, said the judge, wanted any court order on what records are at issue in the suit to cover only the office of the vice president, not Cheney or the other defendants in the lawsuit. The other defendants include the National Archives and the archivist of the United States. The lawsuit stems from Cheney's position that his office is not part of the executive branch of government. This summer, Cheney chief of staff David Addington told Congress the vice president belongs to neither the executive nor legislative branch of government, but rather is attached by the Constitution to Congress. In 2003, Cheney asserted that the office of the vice president is not an entity within the executive branch.

Note: For lots more on government secrecy, click here.

A GOP congressional leader who was wavering on giving President Bush authority to wage war in late 2002 said Vice President Cheney misled him by saying that Iraqi President Saddam Hussein had direct personal ties to al-Qaeda terrorists and was making rapid progress toward a suitcase nuclear weapon. That's one of the revelations in the new book, Angler: The Cheney Vice Presidency, by The Post's Barton Gellman. Angler is based on hundreds of previously unpublished interviews with present and former Cheney advisers, senior officials in federal agencies, diplomats, judges, military officers, senators and members of Congress. Cheney's accusations about Saddam Hussein, described by former House Majority Leader Richard Armey, ... went far beyond public statements that have been criticized for relying on "cherry-picked" intelligence of unknown reliability. There was no intelligence to support the vice president's private assertions, Gellman reports, and they "crossed so far beyond the known universe of fact that they were simply without foundation." Some of the book's most significant news describes a three-month conflict between the Justice Department and the vice president's office over warrantless domestic surveillance. The top White House national security lawyer begins hearing rumors of "the vice president's special program." John B. Bellinger III, who had not been informed of the operation, confronted Cheney's counsel, David S. Addington. "I'm not going to tell you whether there is or isn't such a program," Addington replied, glowering. "But if there were such a program, you'd better go tell your little friends at the FBI and the CIA to keep their mouths shut."

Note: For many powerful exposures of government corruption, click here.

The 3rd Infantry Division’s 1st Brigade Combat Team has spent 35 of the last 60 months in Iraq patrolling in full battle rattle. Now they’re training for the same mission — with a twist — at home. Beginning Oct. 1 for 12 months, the 1st BCT will be under the day-to-day control of U.S. Army North, the Army service component of Northern Command, as an on-call federal response force for natural or manmade emergencies and disasters. This new mission marks the first time an active unit has been given a dedicated assignment to NorthCom, a joint command established in 2002 to provide command and control for federal homeland defense efforts and coordinate defense support of civil authorities. The mission will be a permanent one. They may be called upon to help with civil unrest and crowd control or to deal with potentially horrific scenarios such as massive poisoning and chaos in response to a chemical, biological, radiological, nuclear or high-yield explosive, or CBRNE, attack. The 1st BCT’s soldiers also will learn how to use “the first ever nonlethal package that the Army has fielded,” 1st BCT commander Col. Roger Cloutier said, referring to crowd and traffic control equipment and nonlethal weapons designed to subdue unruly or dangerous individuals without killing them. “It’s a new modular package of nonlethal capabilities that they’re fielding. They’ve been using pieces of it in Iraq, but this is the first time that these modules were consolidated and this package fielded, and because of this mission we’re undertaking we were the first to get it.”

Note: Positioning military troops in country to deal with internal matters violates the posse comitatus act, though the administration will argue that there is a national emergency allowing this.

Over the past week the media was gripped by the news that the FBI was about to charge Bruce Ivins, a leading anthrax expert, as the man responsible for the anthrax letter attacks in September/October 2001. But despite the seemingly powerful narrative that Ivins committed suicide because investigators were closing in, this is still far from a shut case. The FBI needs to explain why it zeroed in on Ivins, how he could have made the anthrax mailed to lawmakers and the media, and how he (or anyone else) could have pulled off the attacks, acting alone. The spores could not have been produced at the U.S. Army Medical Research Institute of Infectious Diseases, where Ivins worked, without many other people being aware of it. Furthermore, the equipment to make such a product does not exist at the institute. The product contained essentially pure spores. The particle size was 1.5 to 3 microns in diameter. There are several methods used to produce anthrax that small. But most of them require milling the spores to a size small enough that it can be inhaled into the lower reaches of the lungs. In this case, however, the anthrax spores were not milled. They were also tailored to make them potentially more dangerous. The spores were coated with a polyglass which tightly bound hydrophilic silica to each particle. Each particle was given a weak electric charge, thereby causing the particles to repel each other at the molecular level. This made it easier for the spores to float in the air, and increased their retention in the lungs. In short, the potential lethality of anthrax in this case far exceeds that of any powdered product found in the now extinct U.S. Biological Warfare Program.

There is apparently no limit to the Bush administration’s desire to invade Americans’ privacy in the name of national security. According to members of Congress, Attorney General Michael Mukasey is preparing to give the F.B.I. broad new authority to investigate Americans — without any clear basis for suspicion that they are committing a crime. Opening the door to sweeping investigations of this kind would be an invitation to the government to spy on people based on their race, religion or political activities. Mr. Mukasey has not revealed the new guidelines. But according to senators whose staff have been given limited briefings, the rules may also authorize the F.B.I. to use an array of problematic investigative techniques. Among these are pretext interviews, in which agents do not honestly represent themselves while questioning a subject’s neighbors and work colleagues. The F.B.I. has a long history of abusing its authority to spy on domestic groups, including civil rights and anti-war activists, and there is a real danger that the new rules would revive those dark days. Clearly, the Bush administration cannot be trusted to get the balance between law enforcement and civil liberties right. It has repeatedly engaged in improper and illegal domestic spying — notably in the National Security Agency’s warrantless eavesdropping program. The F.B.I. and the White House no doubt want to push the changes through before a new president is elected. There is no reason to rush to adopt rules that have such important civil liberties implications.

The controversy over a best-selling author's account of forgery and deception in the White House deepened yesterday with a new CIA denial that it helped the Bush administration produce phony documents suggesting past links between al-Qaeda and Saddam Hussein. Author Ron Suskind's book The Way of the World, released earlier this month, contends that the White House learned in early 2003 that the Iraqi president no longer possessed weapons of mass destruction but went to war regardless. Suskind wrote that the information was passed to British and U.S. intelligence officials in secret meetings with Tahir Habbush, Iraq's spy chief at the time. Moreover, in an allegation that implies potentially criminal acts by administration officials, the author wrote that White House officials ordered a forgery to influence public opinion about the war. The book contends that the CIA paid Habbush $5 million and resettled him in Jordan after the war. Then, it says, in late 2003, the White House ordered the CIA to enlist Habbush's help in concocting a fake letter that purported to show that Iraq helped train Mohamed Atta, the [alleged hijacker] in the Sept. 11, 2001, attacks. Such a letter surfaced in Iraq in December 2003, but its authenticity quickly came into question. Suskind ... yesterday continued to stand by his book and accused the CIA and White House of orchestrating a smear campaign. "It's the same old stuff," said Suskind, who said his findings are supported by hours of interviews, some of them taped. "There's not a shred of doubt about any of it."

Just before the Department of Interior's inspector general released reports that laid bare the oil-and-sex scandal in the department's oil royalties office this week, Interior won an annual award from the federal Office of Government Ethics. The inspector general said Wednesday that federal officials in the Mineral Management Service's royalty-in-kind program allegedly were plied with alcohol and expensive gifts from industry representatives, and in some cases had sex and did drugs with them. The Denver-area office takes in roughly $4 billion each year in oil and natural gas reserves from companies drilling on federal and Indian land and offshore. But, on Monday, the Interior Department was praised for "developing a dynamic laminated Ethics Guide for employees" that was a "polished, professional guide" with "colorful pictures and prints which demand employees' attention." The guide, the award noted, was small enough for employees to carry. Interior also was lauded for having held a four-day seminar for its ethics advisors nationwide. It isn't known if those seminars included the royalty office, where investigators found that a former program director was paid more than $30,000 for improper outside work, bought cocaine using a personal check from his office and engaged in an illicit sexual relationship with a subordinate; employees accepted gifts, including sports tickets and vacations, from industry executives; and two former officials, with the help of a supervisor, arranged to get themselves hundreds of thousands of dollars in consulting work after they retired.

Note: For many more reports of government corruption from major media sources, click here.

The government wasted millions of dollars on four no-bid contracts it handed out for Hurricane Katrina work, including paying $20 million for a camp for evacuees that was never inspected and proved to be unusable, investigators say. A report by the Homeland Security Department's office of inspector general, obtained ... by The Associated Press is the latest to detail mismanagement in the multibillion-dollar Katrina hurricane recovery effort, which investigators have said wasted at least $1 billion. The review examined temporary housing contracts awarded without competition to Shaw Group Inc., Bechtel Group Inc., CH2M Hill Companies Ltd. and Fluor Corp. in the days immediately before and after the August 2005 storm that smashed into the U.S. Gulf Coast. It found that FEMA wasted at least $45.9 million on the four contracts that together were initially worth $400 million. FEMA subsequently raised the total amounts for the four contracts twice, both times without competition, to $2 billion and then $3 billion. FEMA did not always properly review the invoices submitted by the four companies, exposing taxpayers to significant waste and fraud, investigators wrote. In many cases, the agency also issued open-ended contract instructions for months without clear guidelines on what work was needed to be done and the appropriate charges. "We question how FEMA determined that the amounts invoiced were allowable and reasonable," the IG report states, warning that its review was limited in scope so that additional waste and fraud might yet to be found.

Note: For many more reports of government corruption from major media sources, click here.

Important Note: Explore our full index to revealing excerpts of key major media news stories on several dozen engaging topics. And don't miss amazing excerpts from 20 of the most revealing news articles ever published.